Britons are piling up Europe's worst debts

Over-spending Britons are responsible for a third of all unsecured debt in Western Europe, a study reveals today.

The average 'plastic-happy' British consumer owes £3,008 in unsecured debts - almost twice as much as his continental cousin, the report shows.

And as Britain approaches its debt 'saturation point', lenders are being encouraged to cash in on vulnerable borrowers across Europe.

The latest figures show that Britain's personal debt mountain, including mortgage debt, has spiralled to £1.2trillion.

The consumer credit market alone hit £215billion last year, making us the most indebted country in Western Europe, according to analyst group Datamonitor.

Britain's seemingly 'insatiable' appetite for credit is partly to blame, it said. "In contrast, major countries on mainland Europe have a culture of savings and frugality, with people in France and Germany particularly averse to debt," said report author Paul Marsh.

He predicted that lenders would now target fast-growing markets such as Turkey and Greece because there was little room for growth in Britain.

"These markets are where the real opportunities exist, but only for players brave enough to enter," Mr Marsh said.

"The UK is an increasingly difficult place to do business, due to the highly indebted nature of the population."

The charity Consumer Credit Counselling Service said the findings came as little surprise. A spokesman said: "The average debts of people coming to us for help have risen from £29,000 to £33,000 this year."

It comes as another study revealed many credit card companies have bumped up their interest rates in the past three months after being forced to cut their default fees.